Beef 2020: review report

Development of pilot collaborative supply chains to develop new markets

It is recognised within the industry that many processors fail to fully exploit new market opportunities which may arise either at home or abroad because they are fully committed to the "day job" of supplying their current customers. They also recognise that by increasing demand, even marginally, they may increase the price they have to pay for all their requirements. This can occur even in plants with excess capacity which could be usefully utilised. Similarly, producers of cattle are hesitant to increase supply when economics dictate that in a market of a set size, prices will fall if production increases. To balance these two competing issues, a collaborative approach where a producer dedicates a proportion of extra production at the required specification with no fixed price, to a processor who is able to then exploit a new opportunity in the knowledge that they have a secure supply has the potential to grow our industry in a balanced and fair manner.

To meet the requirements of newly emerging markets will require clear alignment of the objectives of all in the supply chain requiring clear communication and commitment between links in the chain resulting in a growth of dedicated supply chains.

Recommendation 3

Develop and pilot integrated collaborative supply chain protocols to meet specific new market opportunities.